Chester 01244 405555

Grosvenor Court
Foregate Street Chester
Cheshire CH1 1HG
DX: 19990 Chester

Shrewsbury 01743 443 043

Lakeside House
Oxon Business Park
Shrewsbury SY3 5HJ
DX: 148563 Shrewsbury 14

Airport City, Manchester 0844 800 8346

Office 129
Manchester Business Park
3000 Aviator Way
Manchester M22 5TG

Send us a message
Our Offices

Settlement Agreements and Lacking Mental Capacity

2nd December, 2016

The recent case of Glasgow City Council v Dahhan UKEAT/0024/15 considered whether an Employment Tribunal had jurisdiction to decide whether lack of mental capacity meant a settlement agreement was unenforceable.

Mr Dahhan was employed by Glasgow City Council as a teacher. He brought tribunal claims for direct discrimination, harassment and victimisation because of race but the parties entered into a settlement agreement whereby Mr Dahhan gave up all claims arising from his employment with the Council, with the exception of claims in respect of enforcing the agreement, personal injury claims not apparent at the time of signing and pension claims.

Mr Dahhan later wished to withdraw his claims which were dismissed under Rule 52 of Employment Tribunals (Constitution and Rules of Procedure) Regulations 2013. Mr Dahhan subsequently asked the tribunal to reconsider the dismissal of his claims, stating that he lacked capacity to instruct his solicitor and to make decisions at the time that he entered into the settlement agreement.

The Employment Judge held that the tribunal had jurisdiction to set aside the settlement agreement on the ground that it was invalid because Mr Dahhan did not have the capacity to contract at the time he entered into it.

The Council appealed the decision but the Employment Appeal Tribunal dismissed the appeal.

This is the first case to consider whether a tribunal has jurisdiction to set aside a settlement agreement due to a party not having contractual capacity at the time of entering into it.

If you are facing claims from an employee or would like to enter into a settlement agreement, contact our Employment Department for specialist legal advice.

Ben Mason

Associate

Employment Law
Email: [email protected]
Tel: 01743 294129

You might also be interested in...

Fair pay for fair work? “Dividends” in owner-managed companies.

22nd May, 2019

There have been a number of Court decisions in recent years grappling with the application of established legal... Read More »

Defending or Bringing a potential Inheritance Act Claim

17th May, 2019

The recent judgement in Wellesley v Wellesley follows the developing line of claims brought by adult children who... Read More »

Shropshire’s leading ladies come together to celebrate business achievements

17th May, 2019

Businesswomen from across Shropshire have come together at an exclusive afternoon tea event held by law firm Aaron... Read More »

Contact Us